IT Dept. Conducts Search and Seizure Operation in Bihar; Detects Unaccounted Transactions Exceeding Rs.100 Crore

Income Tax Department initiated a Search & Seizure action on few groups engaged in the business of gold & diamond jewellery and real estate, on 17.11.2022. The searches were carried out at more than 30 premises spread over Patna, Bhagalpur, Dehri-on-Sone, Lucknow and Delhi.

Many incriminating documents and digital pieces of evidence showing income evasion were discovered and seized during the search.

According to analysis of evidence that was seized, one of the organisations involved in the sale of gold and diamond jewellery invested its unreported money in the cash purchase of jewellery, the remodelling of businesses, and the acquisition of real estate. It was discovered that this organisation had concealed unlawful funds totaling more than Rs.12 crore in its books of account under the guise of client advances. Additionally, during the search activity, during the physical verification of the stock, unaccounted stock worth more than Rs.12 crore was discovered.

Evidence of cash transactions that were not properly recorded in the purchase of land, building construction, and sale of flats have been discovered and confiscated in the case of another real estate investing company. The recovered evidence in the case of a well-known land dealer has further verified the aforementioned unexplained transactions. These unrecorded cash transfers total more than 80 crore rupees. The unreported wealth that the group’s core individuals acquired was used to purchase numerous movable items, including huge land lots.

During the search operation, unaccounted cash and jewellery worth more than Rs.5 crore have been seized. A total of 14 bank lockers have been put under restraint. So far, the search action has led to detection of unaccounted transactions exceeding Rs. 100 crore.

Further investigations are in progress.